August 19, 2002 - What To Expect In The Future Of Air Travel

With US Airways in Chapter 11, United Airlines announcing the likelihood of doing the same, and American Airlines trimming their flights and workforce, concerns have been raised regarding the future comfort for air travelers.

Industry experts say that it’s not necessarily all bad news and there is a bright side to the airlines most recent news regarding the reduction of flights. Fewer flights will mean less congestion in the skies, making it more likely that travelers will arrive on time - instead of stuck on the runway waiting for their plane to be cleared for takeoff or arrival.

American Airlines, the carrier that earlier this week announced a 9 percent reduction in capacity, has acknowledged that its restructuring will mean longer layovers for connecting flights, however the extended wait is not expected to be onerously long. It also means passengers are less likely to miss their connecting flights and more likely to arrive at the same time as their checked baggage. Longer waits at airports will also give travelers more time to eat, which is a good thing if, as expected by some experts, cost-cutting airlines decide to eliminate what's left of their food service.

While the changes are certain to lead to fewer flights on smaller planes and reduced services, it is still uncertain how the changes will impact airfares. Many industry experts predict that even though there will be fewer seats available, low fares will continue. Business travelers remain concerned about the economy and will be reluctant to fly if fares increase too much. Additionally, continuing competition from smaller, low-fare carriers such as Southwest Air Lines, JetBlue Airways and Airtran will keep the prices down.

Once the changes have been introduced, travelers should be prepared to fly on smaller planes as large jets are replaced with regional jets, and regional jets are replaced with turboprops. In reconfiguring their aircraft, carriers may decide to reduce the number of first class seats, and perhaps eliminate them altogether. American Airlines already plans to eliminate first class on some of its transatlantic and Latin American routes and provide business class service only.

Airlines are expected to continue to offer frequent-flier miles because they are an effective way of building and maintaining customer loyalty. In fact, as the shakeout occurs, some airlines may offer double-the-miles programs on some routes to their more loyal customers. However, as capacity shrinks, travelers may find it harder to redeem their miles, especially because cash strapped airlines may try to reduce the availability of free seats.

GTM will continue to keep our customers informed of the ever-changing events with the airlines as the information unfolds. Should you have a specific question regarding the current status of each airline, please direct your questions to acctmgmt@gtmtravel.com.


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